- Pre-construction work begins on the $850 million Collie Steel Mill in Western Australia, with engineering and design underway.
- Expanded geotechnical drilling is scheduled on site for November, building on the first completed programme.
- Developer, Generation Steel, has appointed Clough to design, plan and price its construction (known as ECI) after a recent competitive tender. Clough is the Australian arm of global construction group, Webuild.
- Italian, multinational steelmaking technology group, Danieli, appointed to supply the mill's electric arc furnace, caster and rolling mill under equipment supply and engineering agreement.
- The Collie Steel Mill is Australia's most advanced green steel mill project, with construction and technology partners in place, and backing from the State Government's Made in WA plan. This follows the recent announcement of a renewable power purchase agreement (PPA) with BHP.
- 450,000 tonnes a year of low-emissions steel from Australian scrap and renewable energy, with around 500 construction jobs and 250 ongoing roles.
PERTH, 30 October 2026: Pre-construction work has begun on Generation Steel's Collie Steel Mill project in WA, after two crucial partners were confirmed. When it opens, it will be the first new steel mill built in Australia in more than 35 years, and Western Australia's first.
Clough Projects Australia has begun developing the design, construction plan and costings for the mill. The industry calls this role Early Contractor Involvement (ECI).
Over six months Clough will finish the engineering, plan how the mill will be constructed, and prepare a fully priced construction proposal.
Subject to the proposal and to financial close, the construction contract is expected to be awarded in the first quarter of 2027.
An expanded geotechnical drilling campaign is scheduled to commence in November. It builds on the completed initial programme and will confirm ground conditions for the final plant layout.
Early engineering for the mill's equipment is also underway, with Danieli, the Italian group whose electric arc furnace mini-mills operate worldwide, supplying the technology and associated engineering.
Danieli will supply the core of the mill under its MIDA mini-mill design. This comprises an electric arc furnace using Danieli's Q-One technology, designed to run on variable renewable energy, a continuous caster and a rolling mill.
The rolling mill will produce reinforcing bar, wire rod and merchant bar in one continuous line. Collie will be the first electric arc furnace ever built in Australia to cast and roll steel continuously.
This major new phase comes after agreements were marked at a signing ceremony by the companies in Perth, attended by the Italian Ambassador to Australia, HE Nicola Lener, Consul Sergio Nicolaci and the Chairman of SACE, Italy's export credit agency, Guglielmo Picchi.
Generation Steel Executive Chairman Enzo Gullotti said these appointments put the project's delivery in experienced hands.
"A steel mill is major national infrastructure. We are delighted to partner with one of Australia's most experienced builders and a world leader in mini-mill technology," Mr Gullotti said.
"Clough has been building in Australia for more than a century. Danieli's mini-mills are running today in steel plants across the world. Between them, they bring world-class engineering, the equipment and the construction capability the Collie Steel Mill needs."
"We already have the site approvals, grid connection, contracted renewable energy, a growing customer pipeline and the backing of the State Government. The next few months are about turning an engineered design into a construction contract and a financial close."
"Collie has powered Western Australia for a hundred years. During this planning phase, Clough will engage local subcontractors and suppliers, so the benefits start flowing to the region before construction begins."
Marco Assorati, Senior Executive Vice President Oceania of Webuild and Executive President of Clough, said: "The Collie Steel Mill represents an important opportunity to support the development of a new industrial capability in Western Australia, while contributing to the economic transition of a region that has played an important role in the State's development."
"Clough has been part of Western Australia's industrial landscape for more than a century. By combining our local engineering and construction capability with the global expertise of the Webuild Group, we look forward to working with Generation Steel and Danieli through this early engineering phase."
Danieli Asia Pacific Managing Director Nicola Patrizi said the Collie Steel Mill was ideal for new low-emission steelmaking in Australia.
"This project has everything a modern electric steel mill needs," Mr Patrizi said. "Access to scrap, strong demand for reinforcing steel, renewable energy under contract and a skilled workforce ready for new industry."
"Our MIDA technology is among the most energy-efficient ways to turn scrap into finished steel, and it is designed to run on renewable energy. This project will be good for Australia and a case study for every country working through the energy transition."
The Collie Steel Mill will be powered by 100% renewable energy, secured through a power purchase agreement with BHP announced on 25 October, under which renewable electricity will be supplied from operating solar and wind generation.
The WA Government has invested $9.8 million in the project in June through the Collie Industrial Transition Fund. The investment is part of its Just Transition for Collie and Made in WA plan.
The Government has also announced a commitment to using WA-made green steel on State projects where possible. The mill will turn Western Australian scrap into Western Australian steel, using Western Australian renewable energy and a Western Australian workforce.
